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Discussion Week 06

Diss week 6

This week we are studying the cost leadership business level strategy.  Let's discuss it in two different ways.

First, post your response to this challenge question.  I'm interested to read everyone's thoughts.

Ryanair, Wal-Mart, Timex, Casio, and Hyundai are all cited as examples of firms pursuing cost leadership strategies, but these firms make substantial investments in advertising, which seems more likely to be associated with a product differentiation strategy.  Are these firms really pursuing a cost leadership strategy or are they pursuing a product differentiation strategy by emphasizing their lower costs?

For the second part of your discussion, do some quick research and find a company that is pursuing a cost leadership strategy.  Briefly tell us about the company and give us your overall impression.  Would you do business with them?  Why or why not?  In other words, from a customer perspective, what are the pros and cons of a cost leadership strategy?

(at least 450 words, 3 citation)

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